Am I required to issue a 1099?

[Marlen Rum]

Hi all! I would greatly appreciate some input on my situation.

I purchased a condo in 2022 that needed extensive work. Renovations were done by a close friend who used to be a Reno contractor but had left the business and had a W-2 job at the time; he did the work for me “on the side” when he had time. I paid him several thousands of $ - well above the $600 tax threshold.

Am I required to issue a 1099 to my friend for his labor? From my research, I understand that as a homeowner one is not required to issue a 1099 for the $ paid for the remodel. Is that right?

That said, this property was purchased in my name but not as my home. It was intended to be a gift for my mother, who for various reasons ended up not moving in, and I sold it in 2023 - 13 months later - for a substantial profit. The property was vacant the whole time. I was issued a 1098 by title upon sale, and I understand that I have to declare this in my taxes, but I’m not sure how to go about it given that this wasn’t my home. Are the profits capital gain or income?

I’m also not sure if I can deduct the remodel expenses from my taxes w/o the 1099.

I own a rental property and have an LLC but I'm not in the business of flipping properties. This wasn't exactly a quick flip and it wasn't purchased under my business name. Not sure if that makes any difference.

Any advice will be greatly appreciated!